Competency‐based approaches increasingly are being incorporated to inform training efforts and guarantee the accountability and outcomes in the educational process. They also increasingly are driving credentialing at the generic and specialty levels. This chapter offers an overview of the state of competency development in professional psychology within the context of other health professions. Specifically, we identify the key activities that have advanced our understanding of the core competencies within professional psychology, summarize current efforts related to the assessment of competence for both trainees and professionals, review the relevant literature on competency‐based training, and underscore obstacles and future directions for such initiatives.